Lycamobile agrees new deal to use O2's mobile network

International mobile call provider Lycamobile will continue to use O2’s mobile network after agreeing a new deal.

Lycamobile uses the O2’s UK network as part of its global infrastructure to provide cheap calls to Asia, Africa, Europe and America.

Tesco Mobile and GiffGaff are among the other MVNOs (mobile virtual network operators) that use the O2 network, while TalkTalk and Sky have recently agreed wholesale deals with the operator.

Lycamobile chairman Subaskaran Allirajah said: “Having a strong network partner is essential for us to deliver a great offering for our customers and our longstanding relationship with O2 allows us to do just that.

“We are constantly working on behalf of our customers, to improve the quality and price competitiveness of our service.

“This has been key to our growth and ultimately our success.”

The operator has committed to provide 4G coverage to 98% of the UK’s population by 2017 and already meets a 3G obligation to reach 90% of UK premises.

O2, EE, Three and Vodafone have also agreed to invest a total of £5bn in the country’s mobile infrastructure.

David Plumb, digital and new business director at O2, said: “Having partnered with O2 for six years, Lycamobile understands the benefits of a robust network and brilliant customer experience, which is why it has renewed its relationship with us for a second time.

'Committed'

“We are committed to supporting MVNOs in the market and are therefore delighted to be extending our relationship with Lycamobile.”

Earlier this week, Cable.co.uk reported that the Competitions and Markets Authority wants to investigate the proposed merger of O2 and Three.

The UK’s competitions watchdog has made a request to the European Commission to investigate the merger, which it said has the potential to impact on British consumers.

The authority said: “The Competition and Markets Authority’s (CMA) initial view, following consultation and preliminary analysis, is that the transaction threatens to affect significantly competition in the UK retail mobile and wholesale mobile markets.

"It also believes it is appropriate for the case to be referred to the CMA for investigation because any impact on competition resulting from the merger will likely be limited to UK consumers and because of the CMA’s experience in investigating telecoms mergers – as demonstrated by the CMA’s ongoing investigation into the BT/EE merger in this market.”